EPR and packaging what are current challenges and issues :

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1 Third decade of EPR What lessons and experiences can be used for light sources and other products? Lund October , 2016 EPR and packaging what are current challenges and issues : Joachim Quoden EXPRA Managing Director

2 About EXPRA Association of EPR recovery and recycling systems (compliance schemes) for packaging waste, owned by obliged industry and working on non for profit basis; Strong focus on collection of packaging waste arising at municipal / household level and communication campaigns for separate collection; Currently, 25 members in 21 European countries (17 EU Member States) and in Israel and Quebec, Canada. Providing over 210 million people with infrastructure for collection & recycling of used packaging; recovering over 16 million tons of packaging per year. Working in close partnership with obliged companies and local authorities. 2

3 The role of EPR for packaging in a circular economy Packaging cycle Contract agreements Packaging manufacturer Financed by fees New products Filler/bottler Material for new products Packed product EPR Packaging Recovery Organisation Recycling/ recovery Sorting Retail trade Consumer Local Authority s Waste Management Company Collection & Sorting 3

4 Implementation of the Packaging Directive in Europe 3 countries without any compliance scheme => Taxes Denmark, Hungary, Croatia Trading of certificates UK, (Poland) 36 European countries Tax versus EPR continuous discussion Ukraine, Russia? 1 country with Fund Scheme run by industry Iceland 30 with Producer Responsibility Austria, Belgium, France, Spain, Germany, Ireland, Cyprus, Luxembourg, Portugal, Sweden, Greece, Latvia, Malta, Lithuania, Czech Republic, Slovak Republic, Italy, Slovenia, Estonia, Romania, Bulgaria, Turkey, Norway, Finland, Serbia, Israel, Netherlands, Poland, Macedonia, Bosnia

5 Overall Recycling Performance in 2014 EUROSTAT (without Croatia but with Norway)

6 MS A: Performance Recovery overall Recycling overall Glass recycling Metal recycling Paper recycling Plastic recycling

7 MS B: Performance Recovery overall Recycling overall Glass recycling Metal recycling Paper recycling Plastic recycling

8 EPR - several ways of implementation EPR System in hands of obliged industry (BE, ES, IT, NL, NO, CZ, FR, IE, PT) Competing PROs (DE, PL, RO, BG) Tradable Credits Model with several traders (UK) Several PRO s sharing infrastructure (DE, AT) PROs acting in different areas (RO, BG) PROs have established parallel infrastructure (EE) Operational responsibility fully with local authorities (FR, NL, CZ) Collection and sorting with local authorities (BE, ES, IT) EPR system in parallel to a deposit system (DE, NO, SE, FI, EE) One comprehensive system for all (household) packaging (e.g. BE, FR, ES, IT) Household & ICI Packaging treated differently (DE, FR, BE, ES) Same rules for all packaging (e.g. IT, CZ, SK, RO) Full cost approach (e.g. DE, AT, BE, SE) Shared cost approach (e.g. IT, ES, FR) Incentive cost approach (UK) No operational responsibility for local authorities (e.g. DE, AT, SE)

9 What do the front runners have in common? The top performers have established a very convenient infrastructure for the SEPARATE collection of household packaging for and in the interest of their inhabitants. Most top performers have introduced additional economic instruments like landfill ban, landfill taxes and PAYT. Most top performers put a lot of emphasis on the quality of the collected materials and work to reduce impurities Most top performers have clear rules who is responsible for what within the EPR system, organizational and / or financial Active engagement of obliged industry in the EPR system 9

10 When is EPR successful? EPR has to be designed, implemented and enforced following best practices Involving all actors so that they work closely and trustful together, meaning producers, retail, local authorities, waste management companies and (!) inhabitants Therefore, legislation has to clearly fix the rules and responsibilities for each actor to avoid confusion and conflict of interests BUT, enforcement and a commitment to provide resources on the part of national and local level governments is essential otherwise the whole thing fails Running an EPR system is also a matter of public interest with long term goals and investments and not for short profit 10

11 What is the problem in many countries? No reliable and comparable statistics - Every country interprets definitions and calculation method in a different way No clear legislation no enforcement by the government No level playing field in case of competing PRO s No infrastructure for collection from households in several countries although legislation is in place for over 10 years Transparency within the EPR systems is missing in many countries, not only in the PROs but also for example in the cost structure of local authorities etc No or limited engagement of obliged industry in the EPR system Fight between important stakeholders instead of collaboration 11

12 The CEP should therefore include: 1. Producers -andtheorganisations implementing EPR on their behalf - perform general interest services by contributing to environmental protection, economic efficiency and social responsibility. Their non-profit character should be recognised within legislation. 2. EPR general requirements should be maintained under the Waste Framework Directive, and be tailored to the Packaging and Packaging Waste Directive. 3. The final recycling process should begin upon entrance to the recycling plant, and be coupled with specific quality standards for waste materials including a fair fixing of the costs that industry shall pay 4. Reliable data should be at the core of new waste target levels, which should be justified and technically feasible. 12

13 Contact Joachim Quoden Managing Director EXPRA aisbl 2 Avenue des Olympiades 1140 Brussels Evere Belgium

14 14 Backup slides

15 Joachim Quoden Profession: Independent Lawyer since /92 01/93: German Ministry of Environment 02/93 06/06: German Green Dot scheme DSD in various capacities, i.e. Head of International Affairs 10/00 02/13: Secretary General respective MD of PRO EUROPE 01/13 -. Member of the OECD expert group on EPR 04/13 - : Managing Director of EXPRA 10/13 -. Chair of ISWA WG Governance & Legal Issues 04/14 -. Member of the Global Producer Stewardship Council Advisory Council (Australia) 04/ Member of the Product Stewardship Institute Advisory Panel (Boston, US)

16 Our Members EEQ Canada Fost Plus Belgium Eco Embes Spain CONAI Italy Nedvang Netherlands Valorlux Luxembourg CEVKO Turkey Eco Rom Eco Pack Envipak Green-pak Green Dot Green Dot TMIR Romania Bulgaria Slovakia Malta Cyprus Norway Israel PAKOMAK Macedonia Öko Pannon Hungary Herrco Greece EKO KOM Czech Republic PYR Finland Ecovidrio Spain FTI Sweden ETO Estonia VALIPAC Belgium SLOPACK Slovenia Ekopak Bosnia and Herzegovina

17 Our EXPRA mission To enable members to continuously improve their services by ensuring low costs to their client companies and convenient infrastructure for inhabitants To promote a sustainable and efficient, not-forprofit/profit-not-fordistribution EPR scheme, driven by the obliged industry and offering a service of public or collective interest. To provide a platform for exchange of experience and know how for our members but also for other stakeholders 17

18 EXPRA Working Groups RAC Technical Matters Eco Design EPR Implement ation Data & Reporting Communication Network

19 Our EXPRA Beliefs for EPR Best Practices -1- EPR is not a stand-alone solution but needs a comprehensive + integrated waste management approach EPR organisations should be run by obliged companies on a not-for-profit basis Focus on Separate collection and collection infrastructure for inhabitants that covers also out of home consumption is key for the success of the system! In order to ensure that the right legislation is in place and implemented, different stakeholders have clear roles to play, ensuring no conflict of interests! 19

20 Our EXPRA Beliefs for EPR Best Practices -2- Transparency of operations and data is crucial The fees for all materials covered should be calculated in a fair manner EPR organisations should control the use of the fees collected, and influence infrastructure design if necessary The aim should be to continuously improve system performance Packaging optimisation, design-for-recycling, clear communication and education of inhabitants and company representatives are essential parts of successful EPR systems 20

21 PARTNERSHIP IS KEY TO SUCCESS

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